This article presents an overview of the 5 High-Growth Low PE Stocks. For a detailed overview of such stocks, read our article, 18 High Growth Low PE Stocks.
5. Webster Financial Corporation (NYSE:WBS)
Number of Hedge Fund Investors: 33
Webster Financial Corporation (NYSE:WBS) shares have gained about 8.7% over the past 12 months.
Over the past 12 months Webster Financial Corporation’s (NYSE:WBS) revenue came in at $2.72 billion while in 2022 Webster Financial Corporation’s (NYSE:WBS) total revenue totaled $1.2 billion.
4. Permian Resources Corp (NYSE:PR)
Number of Hedge Fund Investors: 35
Permian Resources Corp (NYSE:PR) in November posted third quarter results. Adjusted EPS in the quarter came in at $0.13, missing estimates by $0.25. Permian Resources Corp’s (NYSE:PR) revenue in the quarter jumped 38% year over year to $758.5 million, beating estimates by $13.27 million.
3. Western Alliance Bancorporation (NYSE:WAL)
Number of Hedge Fund Investors: 36
Regional bank holding company Western Alliance Bancorporation (NYSE:WAL) saw a 7.9% year-over-year increase in revenue during the third quarter.
Miller Value Income Strategy made the following comment about Western Alliance Bancorporation (NYSE:WAL) in its Q3 2023 investor letter:
“Western Alliance Bancorporation (NYSE:WAL) also performed well during the quarter. The regional bank reported 2Q23 EPS of $1.96, -18.0% Y/Y, slightly below consensus of $1.97, and Net Interest Margin (NIM) of 3.42%, -12bps Y/Y, below consensus of 3.50%. Tangible Book Value (TBV) per share stood at $43.09 (P/TBV of ~1.1x) at the end of the quarter, +17.5% Y/Y, while the bank’s Common Equity Tier 1 (CET1) ratio came in at 10.1%, ahead of management’s estimates for 10%+, in-line with consensus. The company posted quarterly deposit growth of $3.5B, or +7.3% sequentially, with total insured and collateralized deposits representing 81% of total deposits and available liquidity coverage of 276% of uninsured deposits. For the second half of 2023 (2H23), management is guiding for deposit growth of $2B per quarter, continued CET1 growth towards the company’s 2024 target of 11%+, NIM of 3.55%, an Adjusted Efficiency ratio in the high-40’s, and net charge-offs of 10bps, at the respective midpoints.”
2. Renaissancere Holdings Ltd (NYSE:RNR)
Number of Hedge Fund Investors: 41
Citi Research in November published a list of financial stocks in the S&P 500 which are strong Buy and have strong expected total returns. Renaissancere Holdings Ltd (NYSE:RNR) made it to the list, with 26% expected total returns.
TimesSquare Capital U.S. Mid Cap Growth Strategy made the following comment about RenaissanceRe Holdings Ltd. (NYSE:RNR) in its Q3 2023 investor letter:
“In Financials, we prefer well-placed insurance companies and niche businesses while tending to avoid banks which face credit deterioration and rising deposit costs. RenaissanceRe Holdings Ltd. (NYSE:RNR), a provider of reinsurance and insurance products, surged ahead by 6%. Its second quarter numbers were solid across underwriting, property catastrophe premiums, investment income, and fee income. While there was an impact from severe storms during the quarter, RenRe’s losses were modest.”
1. First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA)
Number of Hedge Fund Investors: 46
First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA) last year upped its dividend by a whopping 118% while First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA) saw revenue growth of 111% during the third quarter on a year-over-year basis. In October, Wedbush analyst David Chiaverini started covering the stock with an Outperform rating.
Gator Capital Management made the following comment about First Citizens BancShares, Inc. (NASDAQ:FCNCA) in its Q3 2023 investor letter:
“The Fund’s largest position is First Citizens BancShares, Inc. (NASDAQ:FCNCA) (“First Citizens” or “FCNCA”). We acquired our stake over the past three years. Initially, we owned and traded around a small position in CIT Group Inc. (“CIT”) during the summer of 2020. We felt CIT was undervalued and management was making progress in reducing risk during the Covid-19 pandemic. In late 2020, CIT agreed to be acquired by First Citizens. We added to our CIT stake the morning of the acquisition announcement because we thought the acquisition was so financially attractive that First Citizens’ shares would rally and pull CIT’s shares higher. Our CIT shares were exchanged for First Citizens shares when the merger completed. We held onto our First Citizens shares because we admired the management team, we felt the bank was undervalued, and we projected the bank would benefit from higher interest rates. Then, earlier this year, First Citizens was the winning bidder in the FDIC’s auction of the failed Silicon Valley Bank (“SVB”). We added significantly to the Fund’s First Citizens position on the following Monday morning because the deal was unbelievably favorable for First Citizens.
First Citizens’s stock price rose more than 50% that day and has risen another 40% in the months since the SVB acquisition. We have not sold any shares. We believe the stock still has the potential to double over the next three years. Despite this attractive upside, we think the downside is minimal. Our downside scenario is an unchanged stock price in three years…” (Click here to read the full text)
A total of 36 hedge funds out of the 910 funds in Insider Monkey’s database had stakes in First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA). The biggest stake in First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA) is owned by Ken Griffin’s Citadel Investment Group which owns a $186 million stake in First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA).
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